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Tether Drops All Commercial Paper from Reserves in New Transparency Push

Tether Drops All Commercial Paper from Reserves in New Transparency Push

Tether Drops All Commercial Paper from Reserves in New Transparency Push

Stablecoin issuer Tether has finally eliminated its exposure to commercial paper and replaced it with much more liquid and safer US Treasury bills. Part of a push to increase transparency and trust among users of the popular USDT stablecoin.

“Reducing trading papers to zero demonstrates Tether’s commitment to backing its tokens with the safest reserves on the market. This is a step towards greater transparency and trust, not just for Tether, but for the entire cryptocurrency industry stablecoins,” Tether said, in the ad.

Members of the crypto community welcomed the Tether news on Thursday; For example, VanEck strategist Gabor Gurbacs wrote on Twitter that supporting USDT “appears to me less risky than most bank balance sheets.”

Commercial paper has long been known and the news announced on Thursday means that this work is now complete and commercial paper inventories have finally been reduced to zero. Tether has been criticized for in the past, which some see as a lack of transparency, particularly given the lack of formal checks on its reserves.

Among those who have questioned Tether’s practices is the Wall Street Journal, which in an Aug. 27 article noted that while Tether has promised an audit since at least 2017, it has yet to be conducted. In response to the article, Tether called the claims made in it “misinformation”.

He said that his disclosures were “the most honest and transparent in the market” and that “everyone knows we haven’t had an audit and they know we’re working towards an audit. Tether is now the most popular stablecoin in the world with a market cap of $68.4 billion at press time.

 

 

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